Arm Holdings PLC Sponsored ADR $ARM Stock Holdings Reduced by Sustainable Growth Advisers LP

Key Points

• Sustainable Growth Advisers LP cut its ARM stake by 17.3% in the third quarter, selling 66,908 shares and retaining 319,057 shares valued at approximately $92.4 million.
• Institutional ownership remains active, with several funds increasing or initiating positions; institutions collectively own 7.53% of ARM’s outstanding shares.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $303.32. ARM also exceeded quarterly earnings and revenue expectations, though its valuation remains elevated with a P/E ratio above 258.

Sustainable Growth Advisers LP reduced its stake in Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 17.3% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 319,057 shares of the company's stock after selling 66,908 shares during the period. ARM accounts for 1.0% of Sustainable Growth Advisers LP's holdings, making the stock its 22nd biggest holding. Sustainable Growth Advisers LP's holdings in ARM were worth $92,418,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Hyperion Asset Management Ltd raised its holdings in shares of ARM by 28.0% during the fourth quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company's stock valued at $200,713,000 after purchasing an additional 401,594 shares during the period. SG Americas Securities LLC grew its stake in shares of ARM by 265.6% in the 1st quarter. SG Americas Securities LLC now owns 971,067 shares of the company's stock valued at $146,903,000 after buying an additional 705,459 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in shares of ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company's stock valued at $142,983,000 after buying an additional 872,644 shares during the period. Employees Provident Fund Board acquired a new stake in shares of ARM in the 4th quarter valued at about $120,241,000. Finally, Janus Henderson Group PLC bought a new stake in ARM in the 1st quarter valued at about $116,112,000. 7.53% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on ARM. Needham & Company LLC reaffirmed a "buy" rating and set a $255.00 price target on shares of ARM in a research note on Thursday, July 30th. Guggenheim reissued a "buy" rating and issued a $255.00 price objective on shares of ARM in a research note on Thursday, July 30th. Weiss Ratings reissued a "hold (c)" rating on shares of ARM in a research note on Thursday. Rosenblatt Securities decreased their price objective on ARM from $270.00 to $250.00 and set a "buy" rating for the company in a report on Friday, July 31st. Finally, KeyCorp upped their target price on ARM from $300.00 to $430.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $303.32.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s annualized contract value increased 13% to $1.73 billion, suggesting solid demand for its chip architectures and potentially supporting expectations for fiscal second-quarter results. Can ARM's 13% Contract Value Growth Sustain Momentum in Q2?
• Positive Sentiment: Microsoft is adding native Python support to Windows PCs powered by Arm processors. Better software compatibility could strengthen adoption of Arm-based computers and broaden the company’s ecosystem beyond smartphones. Microsoft Brings Native Python Support to Windows on Arm PCs
• Positive Sentiment: Recent investment comparisons continue to highlight Arm’s dominant position in mobile chips and expanding relevance in data centers and artificial intelligence, with its architecture used in more than 99% of smartphones. Arm vs. Credo Technology Group
• Neutral Sentiment: A court ruling in the Arm-Qualcomm licensing dispute awarded Qualcomm only $2 in damages. The limited financial impact reduces the immediate threat to Arm, but the broader licensing relationship and legal stakes remain unresolved. Arm-Qualcomm legal fight ends in limited verdict
• Negative Sentiment: Arm remains highly sensitive to interest rates because its valuation relies heavily on earnings expected years in the future. Its roughly 107-times forward earnings multiple also leaves limited room for disappointment compared with lower-priced semiconductor peers. Why Arm Holdings Stock Was Falling Today

Insider Buying and Selling at ARM

In related news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the transaction, the chief financial officer owned 153,442 shares of the company's stock, valued at $46,032,600. The trade was a 6.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ARM Price Performance

ARM opened at $244.79 on Friday. Arm Holdings PLC Sponsored ADR has a fifty-two week low of $100.02 and a fifty-two week high of $452.70. The firm has a market capitalization of $261.46 billion, a PE ratio of 258.71, a P/E/G ratio of 7.06 and a beta of 3.78. The company's 50-day moving average is $268.36 and its 200 day moving average is $269.61.

ARM (NASDAQ:ARM - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. The business had revenue of $1.29 billion for the quarter, compared to analysts' expectations of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm's revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.35 EPS. As a group, analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

ARM Profile

Arm Holdings plc NASDAQ: ARM is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company's offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.

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